What is tax type combination in SAP PY-US - USA?

SAP Term: tax type combination

• Component: PY-US

• Component Name: USA

• Description: Grouping of tax types within a taxability model that partially determines the calculation of tax for a certain wage type. Primarily used in conjunction with tax class and tax authority.

Smart SAP Assistant

• Key Concepts: 
  Tax type combination is a feature of the SAP Payroll component PY-US USA. It allows users to define different tax types for each employee, based on their individual tax situation. This ensures that the correct taxes are withheld from each employee’s paycheck. 
  
  How to use it: 
  To use the tax type combination feature, users must first define the different tax types in the system. This can be done by entering the relevant information into the system, such as the tax rate and any applicable exemptions. Once this is done, users can then assign a tax type to each employee. This will ensure that the correct taxes are withheld from their paycheck. 
  
  Tips & Tricks: 
  It is important to ensure that all of the information entered into the system is accurate and up-to-date. This will help to ensure that employees are not over or under taxed. Additionally, it is important to review any changes in an employee’s tax situation and update their tax type accordingly. 
  
  Related Information: 
  For more information on how to use the tax type combination feature in SAP Payroll PY-US USA, please refer to the official SAP documentation.